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[quote=Anonymous]One thing that the shutdown has highlighted for us is that we need a much bigger emergency cushion.

DH and I have been discussing downsizing from our Fairfax County SFH (worth about $600K, we owe about $350K on the mortgage, current monthly payment is $2525 at 3.375%) to a townhouse (we can find a reasonably nice one slightly farther out in a good school district for about $465K).  The idea would be to take a large chunk of the proceeds and put it in savings, and put the remainder toward the downpayment on the townhouse.  With the lower price and the downpayment, we would also have a smaller monthly payment and be able to save more, even with a higher interest rate on a new mortgage--I am seeing 4.375% on a VA loan, so this would be only a percentage point higher than our current rate.

Our current SFH is a ranch-style house with a finished basement, and honestly we only use the upstairs, so in terms of space I am not sure it would be that different.  Also, I think this probably makes sense financially.  However, I find myself very resistant to the idea; to me SFH = middle class = not a failure.

Advice?[/quote]

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